Other parts of this series:
- The pressure is growing to professionalize change in financial services
- Prioritizing capabilities as you professionalize change in your organization
- Strong and committed leadership is key to professionalizing change
- Collaboration is key to making change successful
- Industrializing change in financial services organizations
As we’ve established in previous posts in this series, change is not optional or simple for banks and insurers any more. In the slower world of the past, it was about getting the organization and its people from A to B to C, perhaps with a bit of training and communications to help people adapt.
No more. The deep transformation most FS businesses are undergoing today demands something different. Transformation is about changing how we work, how we operate and how we serve customers. To succeed, these sorts of changes need clear vision and change leadership that generate trust and positive momentum.
Accenture’s ChangeTracking© research shows that the success factors in driving business performance and benefits realization through a business transformation start with leaders being aligned, committed and ready to lead the change. These leaders also have a vision and the ability to sell it to the organization. Among the top 10 percent of performers in this research, the people understand the vision, agree with it, and trust their senior leaders.
Effective sponsorship is a factor behind all successful programs – the sponsor needs to set a clear vision, align the wider leadership team, clear the path for delivery, secure resources and create pull within the business. Most important of all is creating an environment of trust – transformational changes that are implemented into low-trust environments have about a 3 percent chance of success.
Our research shows that building trust pays big dividends; as organizations move from low performance to high performance there is an average rise in trust of nearly 50 percent. This is accompanied by a rise in business performance of about 40 percent and in benefits realization of nearly 70 percent.
In the past, change leadership roles were a sideways career step or a secondary role; today they are among the most important roles in the organization and need to be populated with the best leadership talent available. Change leadership roles are a proving ground for future board members, stretching them beyond their comfort zone and helping them shape the future of the business.
It is essential that change has effective ‘business led’ governance. Fundamental to this is prioritizing demand and supply across the portfolio, then overseeing delivery momentum, risk and benefits at both a portfolio and program level.
However, change leadership goes way beyond the program sponsor and governance. It is a vital competence of all business executives and a much deeper set of behaviors, attitudes and skills. Exemplary change leaders raise the ambitions, horizons and beliefs of their FS organization.
They create a constructive environment that can bring out the most innovative thinking from their people. They take ownership of big and challenging decisions, and they are comfortable collaborating in a multi-disciplinary environment.
To learn more, download Professionalizing change in financial services.